Notes that there is a rumor floating around - which has reached the President - that McHenry encouraged Stagg to resign from his position as chief clerk of the War Department in order to create a job for his brother-in-law. Asks for Stagg to reveal the truth that he was not pressured to resign.

Stagg has received a letter from Captain Griffith McRea of Wilmington, North Carolina alerting Stagg that he has not received the clothing for his company. Stagg wants to know the destination of said clothing after it left Philadelphia and by what vessel was it transported.

Stagg assures McHenry that he felt only kindness and indulgence from him as an employer, especially during "a long and unavoidable absence." States that McHenry's words or actions had nothing to do with his [Stagg's] resignation, citing rather poor health and the seeking of a better opportunity with which to support his family.

McHenry mentions hearing a rumor that he had forced Stagg out of the position of Chief Clerk of the War Department to make way for McHenry's brother-in-law, and that he treated him badly in that office - asks Stagg whether he felt any such pressure or displeasure with McHenry's conduct.

In light of recent rumors that McHenry had pressured Stagg into resigning as chief clerk in order to promote his brother-in-law to the position, McHenry had asked Stagg to formally renounce any truth behind the rumor. Stagg responds by stating unequivocally that McHenry did not cause his resignation, blaming his state of health instead.

Simmons certifies that $148.60 is due John Stagg, Jr. being for the expenses attending the education of John Durant and Richard Bailey, two Indian youths of the Creek Nation from 1 January to 31 March 1795.